The mutual funds unit at JPMorgan (NYSE:JPM) - JPMorgan Funds - has just launched a new commodity futures fund, which offers an actively managed commodities futures fund created to deal with the volatility that can be part of investing in commodities.
Dubbed the Highbridge Dynamic Commodities Strategy Fund (HDSAX), it's goal is to generate returns whether the price of commodities are falling or rising.
The goal according to JPMorgan will be to generate about 16 percent on an annual basis; a similar return in line with the Dow Jones UBS Commodities Index.
The breakdown in net commodity exposure of the fund is 78.8 percent precious metals and financial commodities, 15.5 percent agriculture, 13.1 percent energy and 6.2 percent industrial metals.
Showing posts with label Commodity Fund. Show all posts
Showing posts with label Commodity Fund. Show all posts
Tuesday, April 27, 2010
Wednesday, January 6, 2010
Commodity ETFs Double Inflows in 2009
Commodity ETFs
In 2009 commodity ETFs enjoyed a solid year, as the capital flowing into the exchange-traded funds were over double what they brought in in 2008, mirroring the growth of ETFs in general.
What was unusual in the commodity ETF sector, was that a large number of the commodity ETFs didn't perform that well, and in many cases lost huge amounts of money.
Even so, that isn't deterring investors from moving significant amounts of capital into ETFs, and 2010 looks like it'll be another banner year for them.
In 2008, commodity ETFs tookin about $13.4 billion, while in 2009 it exploded to $30.1 billion. Most of that was invested in ETFs which bet prices for agriculture, energy and metal would rise during the year.
One of the ongoing winners for ETFs was the largest commodity ETF and gold fund, SPDR Gold Trust, which continues to take advantage of increasing prices of gold, and enjoyed a 24 percent return in 2009. They should enjoy good returns for years into the future, although there will be obvious times of pullback and corrections.
To me tracking ETFs will always be the best way to invest in them, while managed ETFs not only generate more fees, but in many cases underperform because of costs, payment of management, and not really mirroring the market like an low-managed ETF will do.
Commodity ETFs
In 2009 commodity ETFs enjoyed a solid year, as the capital flowing into the exchange-traded funds were over double what they brought in in 2008, mirroring the growth of ETFs in general.
What was unusual in the commodity ETF sector, was that a large number of the commodity ETFs didn't perform that well, and in many cases lost huge amounts of money.
Even so, that isn't deterring investors from moving significant amounts of capital into ETFs, and 2010 looks like it'll be another banner year for them.
In 2008, commodity ETFs tookin about $13.4 billion, while in 2009 it exploded to $30.1 billion. Most of that was invested in ETFs which bet prices for agriculture, energy and metal would rise during the year.
One of the ongoing winners for ETFs was the largest commodity ETF and gold fund, SPDR Gold Trust, which continues to take advantage of increasing prices of gold, and enjoyed a 24 percent return in 2009. They should enjoy good returns for years into the future, although there will be obvious times of pullback and corrections.
To me tracking ETFs will always be the best way to invest in them, while managed ETFs not only generate more fees, but in many cases underperform because of costs, payment of management, and not really mirroring the market like an low-managed ETF will do.
Commodity ETFs
Tuesday, March 24, 2009
Investing in Commodity ETFs
A commodity EFT or exchange traded fund, is used to track the price of an individual commodity like silver or gold, or it could also be used to track a basket of commodities, where storage costs could play a factor, or it could buy up futures contracts.
Because commodity futures offer leverage, ETF commodity funds also place extra capital in something like an interest-bearing government bond. That way any dividends paid out can be paid out of that interest from the bonds.
The interest is also used to pay expenses incurred by the commodity ETF.
There is also another debt instrument called a commodity ETN, or exchange traded note, whose price fluctuates with the commodity index it is associated with. There are credit risks with ETNs, which are in effect senior bank notes.
In general, commodity ETFs track commodity production companies; like a mining outfit. Because of that, many factors can contribute to its performance, outside of leverage alone.
Even though we are in a temporary holding pattern for commodity demand, it will resume as soon as the global economy turns around, and then we should see years of significant profits in the overall sector.
This will make all commodity investment very alluring, along with commodity ETFs.
The emerging markets, especially China and India, although including Eastern Europe and Russia, guarantees demand won't subide any time soon, and battles over access to resources will push prices up, as the middle classes in these regions continue to grow.
One thing about commodities that must be kept in mind, is they don't generate income, so prices are the sole purpose for entering into them, including the hedging aspect of commodity prices.
Another important factor is the expenses connected to investing in commodity ETFs. Everything from trading expenses, storage of raw materials and other general charges must be taken into account in the overall picure.
Because most commodity ETFs don't tend to trade as much as regular funds, there could be fewer expenses there, but nonetheless, it has to be watched because it can definitely be the difference between failure and success, depending on the ETFs performance.
As mentioned earlier, like all commodities, a commodity ETF or ETN can offer a hedge against other factors affecting your income, and so if energy prices of some type increase significantly, you can buy into an energy ETF to offset those increase in prices, and hedge against the inflationary pressures.
Finally, whether it's a commodity ETF or ETN, there are very different treatment of taxes on gains, and you do need to consult your accountant to get the whole picture of how your investment will fare if successful.
Because commodity futures offer leverage, ETF commodity funds also place extra capital in something like an interest-bearing government bond. That way any dividends paid out can be paid out of that interest from the bonds.
The interest is also used to pay expenses incurred by the commodity ETF.
There is also another debt instrument called a commodity ETN, or exchange traded note, whose price fluctuates with the commodity index it is associated with. There are credit risks with ETNs, which are in effect senior bank notes.
In general, commodity ETFs track commodity production companies; like a mining outfit. Because of that, many factors can contribute to its performance, outside of leverage alone.
Even though we are in a temporary holding pattern for commodity demand, it will resume as soon as the global economy turns around, and then we should see years of significant profits in the overall sector.
This will make all commodity investment very alluring, along with commodity ETFs.
The emerging markets, especially China and India, although including Eastern Europe and Russia, guarantees demand won't subide any time soon, and battles over access to resources will push prices up, as the middle classes in these regions continue to grow.
One thing about commodities that must be kept in mind, is they don't generate income, so prices are the sole purpose for entering into them, including the hedging aspect of commodity prices.
Another important factor is the expenses connected to investing in commodity ETFs. Everything from trading expenses, storage of raw materials and other general charges must be taken into account in the overall picure.
Because most commodity ETFs don't tend to trade as much as regular funds, there could be fewer expenses there, but nonetheless, it has to be watched because it can definitely be the difference between failure and success, depending on the ETFs performance.
As mentioned earlier, like all commodities, a commodity ETF or ETN can offer a hedge against other factors affecting your income, and so if energy prices of some type increase significantly, you can buy into an energy ETF to offset those increase in prices, and hedge against the inflationary pressures.
Finally, whether it's a commodity ETF or ETN, there are very different treatment of taxes on gains, and you do need to consult your accountant to get the whole picture of how your investment will fare if successful.
Monday, February 2, 2009
Commodities: New Jim Rogers Fund China
Jim Rogers has combined two of his favorite investment sectors in a new commodities index fund involving China and agriculture. He has teamed up with Australia's Macquarie Funds group to form the new Macquarie and Rogers China Agriculture Index.
With some commodities showing signs they're getting hot again, and food eventually being a major factor in providing for the masses, the new commodity index fund should be a great short and long term vehicle for investors looking to put their money in China and agriculture.
Well run commodities funds will do great in the years ahead, and the bull commodity market isn't near to coming to an end, even though the global economy has been sliding.
As an alternative investment, hedge funds related to commodities will outperform most investment vehicles on the financial market, and partnering with Macquarie Funds Group to provide a new hedge fund targeting China and its food market will be a winner.
Those wanting to put their money into commodity investing will find that the Macquarie and Rogers China Agriculture Index will represent agricultural commodities consumers in China primarily eat, and will track the basket of agricultural commodities through their index fund by focusing on food price changes.
The commodities fund was started in November, and gave a return of over 11 percent in December, doing better than most agricultural indices, and doing better than almost every stock market in that part of the world.
With that immediate success, the commodities fund was doing well enough to start to be heavily marketed by the Macquarie Group, the parent of the Macquarie Funds commodity index.
The food consumption habits of the Chinese people will probably be a bellwhether for food prices going forward, and so a index fund connected to Jim Rogers will do well in tracking the price fluctuations of food in the heavily populated country. It should rank among one of the top hedge funds going forward.
What will make the Macquarie and Rogers China Agriculture Index such a good place to invest in the hot commodities market is the way it tracks the components involved.
Most the current commodity index funds will use production or supply side factors as the key measurement which guides the performance of the top commodity hedge funds.
What's unique with the Macquarie and Rogers China Agriculture Index is it measures components by projected and current consumption of agricultural products in China.
Another benefit to those marketing and managing financial products to invest in, is the ability to create innovative products linked to the overall focus of the commodity index fund. How that happens is the exchange-traded futures contracts or commodity ETF future contracts it uses on physical commodities.
For Jim Rogers, this is a good opportunity to be involved with what he passionately believes is the key way to invest now and in the long term future. In the past Jim Rogers has worked with other groups lik Macquarie, but never in relationship to the Chinese market. In that sense, connecting to a hot commodity market like China with a agricultural raw materials fund will be a great way to profit for those interested in investing in a commodity or commodity index fund or ETF.
Jim Rogers recently said that the bull market that can be counted up over the next five to ten years is in agriculture, and of course that means China will be a major player in any commodity investment in connection to food, raw materials or agriculture. Rogers continues to be bullish on those two areas: China and commodities; especially agriculture.
He said one thing everyone can count on, no matter what happens in other sectors, is people will continue to eat, making agriculture a key part of any commodity investment portfolio.
While gold and silver have been looked upon as significant commodity investments for this year, we'll have to keep an eye on commodity hedge funds and commodity etfs that target agriculture. With agriculture prices plummeting in 2008, they will eventually turn around, and investing in a commodity index fund like Macquarie and Rogers China Agriculture Index should provide a good return when those prices start to go back up again.
Growth in agricultural demand will be interanational, and Asia and China is by far the fastest growing region economically and by population.
So those investing in agricultural commodities will enjoy solid profits for years ahead as massive demand for food continues, while over the short term valuations make the agriculture sector attractive. It's only a matter of when raw material funds start surging upward again, not if.
For December 2008, commodity funds were hot in contrast to the stock markets, and did much better than their counterparts. That will continue overall in 2009, as demand for grain and food continues to surge.
Much of the strategy for the new commodity index fund of tracking consumption patterns in China should make investing in hot commodities like agriculture beneficial to investors. Consumption patters are believed to be the key by the index fund, and tying in to the eating habits of the Chinese people should help it perform differently and better than their competitors; at least that's the hope, and it has a good chance of doing just that.
Consumption habits of the Chinese should be the key influence in connection to food prices around the world, and so the Macquarie and Rogers China Agriculture Index is made to move with that expected reality.
This should be a winner for Jim Rogers and Macquarie Funds, as their commodity index fund competitors are big players such as Citigroup's Japan's Nikko Asset Management unit, JPMorgan Chase & Co.’s (JPM) JF Asset Management division, ING Groep NV (ADR:ING), and Schroders PLC. This gives commodity index investors a real option and the ability to invest in commodities in a way that differentiates from the usual way of commodity funds tracking mechanism.
Jim Rogers of course has been a big player in the markets for years, primarily being discovered for his connection to The Quantum Fund and George Soros. He's also inked several books including the popular "Investment Biker" and his recently released "Bull in China."
If this new commodity index fund performs even close to the hot Quantum Fund, it'll be a huge success for Rogers again, as well as investors. Over a ten-year period the fund exploded for gains of around 4,200 percent, while the Standard & Poor’s 500 Index performed at a paltry, approximate 50 percent.
While food prices fell in the last half of 2008, that's probably going to change when the economy turns around and people start to spend again. When that happens, commodity index funds and commodity etfs will be major players in the success of investors for a long time to come.
This new fund in relationship to Jim Rogers will play a significant role for those investing in commodities and the hot commodities hedge fund sector.
With some commodities showing signs they're getting hot again, and food eventually being a major factor in providing for the masses, the new commodity index fund should be a great short and long term vehicle for investors looking to put their money in China and agriculture.
Well run commodities funds will do great in the years ahead, and the bull commodity market isn't near to coming to an end, even though the global economy has been sliding.
As an alternative investment, hedge funds related to commodities will outperform most investment vehicles on the financial market, and partnering with Macquarie Funds Group to provide a new hedge fund targeting China and its food market will be a winner.
Those wanting to put their money into commodity investing will find that the Macquarie and Rogers China Agriculture Index will represent agricultural commodities consumers in China primarily eat, and will track the basket of agricultural commodities through their index fund by focusing on food price changes.
The commodities fund was started in November, and gave a return of over 11 percent in December, doing better than most agricultural indices, and doing better than almost every stock market in that part of the world.
With that immediate success, the commodities fund was doing well enough to start to be heavily marketed by the Macquarie Group, the parent of the Macquarie Funds commodity index.
The food consumption habits of the Chinese people will probably be a bellwhether for food prices going forward, and so a index fund connected to Jim Rogers will do well in tracking the price fluctuations of food in the heavily populated country. It should rank among one of the top hedge funds going forward.
What will make the Macquarie and Rogers China Agriculture Index such a good place to invest in the hot commodities market is the way it tracks the components involved.
Most the current commodity index funds will use production or supply side factors as the key measurement which guides the performance of the top commodity hedge funds.
What's unique with the Macquarie and Rogers China Agriculture Index is it measures components by projected and current consumption of agricultural products in China.
Another benefit to those marketing and managing financial products to invest in, is the ability to create innovative products linked to the overall focus of the commodity index fund. How that happens is the exchange-traded futures contracts or commodity ETF future contracts it uses on physical commodities.
For Jim Rogers, this is a good opportunity to be involved with what he passionately believes is the key way to invest now and in the long term future. In the past Jim Rogers has worked with other groups lik Macquarie, but never in relationship to the Chinese market. In that sense, connecting to a hot commodity market like China with a agricultural raw materials fund will be a great way to profit for those interested in investing in a commodity or commodity index fund or ETF.
Jim Rogers recently said that the bull market that can be counted up over the next five to ten years is in agriculture, and of course that means China will be a major player in any commodity investment in connection to food, raw materials or agriculture. Rogers continues to be bullish on those two areas: China and commodities; especially agriculture.
He said one thing everyone can count on, no matter what happens in other sectors, is people will continue to eat, making agriculture a key part of any commodity investment portfolio.
While gold and silver have been looked upon as significant commodity investments for this year, we'll have to keep an eye on commodity hedge funds and commodity etfs that target agriculture. With agriculture prices plummeting in 2008, they will eventually turn around, and investing in a commodity index fund like Macquarie and Rogers China Agriculture Index should provide a good return when those prices start to go back up again.
Growth in agricultural demand will be interanational, and Asia and China is by far the fastest growing region economically and by population.
So those investing in agricultural commodities will enjoy solid profits for years ahead as massive demand for food continues, while over the short term valuations make the agriculture sector attractive. It's only a matter of when raw material funds start surging upward again, not if.
For December 2008, commodity funds were hot in contrast to the stock markets, and did much better than their counterparts. That will continue overall in 2009, as demand for grain and food continues to surge.
Much of the strategy for the new commodity index fund of tracking consumption patterns in China should make investing in hot commodities like agriculture beneficial to investors. Consumption patters are believed to be the key by the index fund, and tying in to the eating habits of the Chinese people should help it perform differently and better than their competitors; at least that's the hope, and it has a good chance of doing just that.
Consumption habits of the Chinese should be the key influence in connection to food prices around the world, and so the Macquarie and Rogers China Agriculture Index is made to move with that expected reality.
This should be a winner for Jim Rogers and Macquarie Funds, as their commodity index fund competitors are big players such as Citigroup's Japan's Nikko Asset Management unit, JPMorgan Chase & Co.’s (JPM) JF Asset Management division, ING Groep NV (ADR:ING), and Schroders PLC. This gives commodity index investors a real option and the ability to invest in commodities in a way that differentiates from the usual way of commodity funds tracking mechanism.
Jim Rogers of course has been a big player in the markets for years, primarily being discovered for his connection to The Quantum Fund and George Soros. He's also inked several books including the popular "Investment Biker" and his recently released "Bull in China."
If this new commodity index fund performs even close to the hot Quantum Fund, it'll be a huge success for Rogers again, as well as investors. Over a ten-year period the fund exploded for gains of around 4,200 percent, while the Standard & Poor’s 500 Index performed at a paltry, approximate 50 percent.
While food prices fell in the last half of 2008, that's probably going to change when the economy turns around and people start to spend again. When that happens, commodity index funds and commodity etfs will be major players in the success of investors for a long time to come.
This new fund in relationship to Jim Rogers will play a significant role for those investing in commodities and the hot commodities hedge fund sector.
Thursday, October 16, 2008
Commodities: Pardo Capitol Holding its Own
Pardo Capital Enjoys Solid Growth, Steady Rise
CHICAGO, Oct 16, 2008 (BUSINESS WIRE) -- While stocks tumble and surge, the roller coaster ride for Americans may be starting to grind to a halt. But for those who have invested in XT99, an automated algorithmic trading system, the trip has been a steady climb.
Pardo Capital Limited and XT99 had an impressive September -- while Wall Street plummeted,XT99 rose9.7% for the month.
"We're pleased with the performance and integrity of our automated system, to say the least," said Bob Pardo of Pardo Capital."Year to date, we're up 33.9%, and the ten year track record is a compounded annual return of more than 22%."
According to information provided by Pardo, when you consider this compounded annual rate of return, the overall return is an impressive 547%.
XT99 trades exchange traded futures markets on a global scale.This includes currencies, agricultural commodities, energy, stock indices and fixed-income instruments.
"We've designed this model to exploit long-term, macro-economic trends," Pardo said. "Unlike many long-term trend followers, XT99 is better at anticipating trends and that is proven in our substantial results."
According to Pardo, risk management is accomplished through traditional pathways such as market diversification and trading pace diversification, but the foundation of the risk model is a proprietary asset allocation methodology developed by his partners.
For more information on XT99 contact Marketing Director Rich Sternal at 630.355.2337 or rasternal@pardocapital.com or visit Pardo Capital.
SOURCE: Pardo Capital Limited
Pardo Capital Limited
Rich Sternal, 630-355-2337
rasternal@pardocapital.com
www.pardocapital.com
Copyright Business Wire 2008
CHICAGO, Oct 16, 2008 (BUSINESS WIRE) -- While stocks tumble and surge, the roller coaster ride for Americans may be starting to grind to a halt. But for those who have invested in XT99, an automated algorithmic trading system, the trip has been a steady climb.
Pardo Capital Limited and XT99 had an impressive September -- while Wall Street plummeted,XT99 rose9.7% for the month.
"We're pleased with the performance and integrity of our automated system, to say the least," said Bob Pardo of Pardo Capital."Year to date, we're up 33.9%, and the ten year track record is a compounded annual return of more than 22%."
According to information provided by Pardo, when you consider this compounded annual rate of return, the overall return is an impressive 547%.
XT99 trades exchange traded futures markets on a global scale.This includes currencies, agricultural commodities, energy, stock indices and fixed-income instruments.
"We've designed this model to exploit long-term, macro-economic trends," Pardo said. "Unlike many long-term trend followers, XT99 is better at anticipating trends and that is proven in our substantial results."
According to Pardo, risk management is accomplished through traditional pathways such as market diversification and trading pace diversification, but the foundation of the risk model is a proprietary asset allocation methodology developed by his partners.
For more information on XT99 contact Marketing Director Rich Sternal at 630.355.2337 or rasternal@pardocapital.com or visit Pardo Capital.
SOURCE: Pardo Capital Limited
Pardo Capital Limited
Rich Sternal, 630-355-2337
rasternal@pardocapital.com
www.pardocapital.com
Copyright Business Wire 2008
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